Latest news with #Project75I
News18
11-07-2025
- Business
- News18
Record Rs 1.06 Lakh Crore Submarine Deal To Make Indian Navy A Global Undersea Power
Last Updated: The landmark deal, part of the ambitious Project 75I, will significantly elevate India's maritime strength and drive a new chapter in indigenous defence manufacturing India is preparing to execute its largest-ever defence contract, a Rs 1.06 lakh crore mega deal poised to transform the Indian Navy into a formidable undersea force within the next decade. As geopolitical tensions intensify in the Indo-Pacific, especially with China's growing footprint in the Indian Ocean and Pakistan's expanding naval ambitions, this move signals India's most ambitious naval modernisation effort yet. The defence ministry is likely to award the twin submarine contracts to Mazagon Dock Shipbuilders Limited (MDL) by the end of the next financial year, sources indicate. This landmark deal, part of the ambitious Project 75I, will significantly elevate India's maritime strength and drive a new chapter in indigenous defence manufacturing. India's submarine arsenal currently comprises 16 conventional submarines, recently reinforced by the addition of INS Vagsheer under the original Project-75. This project saw the successful induction of six Kalvari-class Scorpene submarines, now regarded as the backbone of India's underwater combat capability. The Indian Navy's newest warship, INS Tamal, was also recently inducted. Built in collaboration with Russia and armed with the lethal BrahMos cruise missile, it adds another sharp edge to India's surface fleet. But while these developments mark progress, officials believe India must scale up quickly to counter regional threats. China's People's Liberation Army Navy (PLAN) operates a staggering 355 warships and submarines, making it the world's largest naval force. Pakistan, meanwhile, is also enhancing its undersea warfare capabilities with China's support. Germany's TKMS To Partner In The Rs 70,000 Crore Project Under Project-75I, MDL will collaborate with Germany's ThyssenKrupp Marine Systems (TKMS) to build six state-of-the-art submarines based on the HDW Class 214 design. These will be fitted with Air Independent Propulsion (AIP) systems, enabling them to remain submerged for up to two weeks without surfacing, a significant tactical advantage. These submarines, 72 metres in length and weighing 2,000 tonnes, will carry eight weapon tubes and accommodate a 27-member crew. The AIP system generates electricity from the chemical reaction of hydrogen and oxygen, allowing stealth operations without detectable engine noise. A key clause in the deal mandates 45% indigenous content in the first submarine, rising to 60% by the sixth. Technology transfer from TKMS will eventually empower India to manufacture future submarines independently. The first vessel is expected seven years after the contract is signed, with the remaining delivered annually. Rs 36,000 Crore Boost For Next-Gen Submarines In parallel, the government is also poised to greenlight a second submarine contract worth Rs 36,000 crore for building three next-generation Scorpene-class submarines. These will be an upgraded version of the existing Kalvari class and will carry 60% indigenous content. The design will be similar to those delivered to the Brazilian Navy. The first submarine under this program will be delivered in six years, followed by two more at yearly intervals. Together with the HDW-class, these additions are set to massively upgrade the Indian Navy's undersea strike capabilities. Indigenous AIP System And Weaponry India's thrust toward self-reliance is further underlined by the Defence Research and Development Organisation (DRDO) successfully developing an indigenous AIP system. In December 2024, the government signed a Rs 1,990 crore deal with MDL to install this system on existing Kalvari-class submarines, starting with INS Kalvari during its major refit in September 2025. In a separate deal worth Rs 877 crore, India has partnered with France's Naval Group to equip Kalvari-class submarines with electronic heavyweight torpedoes, enhancing their lethality under the sea. Employment, Industrial Growth And Naval Expansion The scale of these defence projects is expected to generate significant employment. The AIP initiative alone will create an estimated three lakh man-days of work. MDL has already partnered with over 50 Indian companies, while the Indian arm of Naval Group is training more than 70 Indian engineers on advanced submarine technologies. MDL's current manufacturing infrastructure supports the construction of 11 submarines and 10 destroyers simultaneously. The company has already proven its capability by successfully delivering all six submarines under the original Project-75. India's long-term maritime strategy involves developing a 175-ship strong navy by 2035. At present, the Navy has over 130 vessels, with 61 new warships in various stages of construction. Strategic Significance In Asia-Pacific The renewed push under Project-75I and the Scorpene expansion is not just about numbers – it's a strategic imperative. India must maintain a credible undersea deterrent and power projection capability in the Indian Ocean Region (IOR) and beyond, especially as China and Pakistan aim to assert influence in critical sea lanes. Get breaking news, in-depth analysis, and expert perspectives on everything from politics to crime and society. Stay informed with the latest India news only on News18. Download the News18 App to stay updated! tags : China defence deals indian navy indian ocean pakistan submarine view comments Location : New Delhi, India, India First Published: July 11, 2025, 16:26 IST News india Record Rs 1.06 Lakh Crore Submarine Deal To Make Indian Navy A Global Undersea Power Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
10-07-2025
- Business
- Business Standard
What's firing up Bharat Dynamics? 8 reasons behind MOFSL's positive view
MOFSL on Bharat Dynamics: Ammunition and missile systems manufacturers Bharat Dynamics Limited (BDL) shares were in focus on Thursday, July 10, 2025 after Motilal Oswal Financial Services (MOFSL) initiated coverage on the stock. On the bourses, however, Bharat Dynamics' share price fell 2.53 per cent to an intraday low of ₹1,934.80. Around 9:50 AM, the Bharat Dynamics share was trading 1.60 per cent lower at ₹1,953.30 per share, while the benchmark BSE Sensex was down 0.12 per cent at 83,434.31 levels. MOFSL today initiated coverage on Bharat Dynamics with a 'Neutral' rating and a target price of ₹1,900, indicating a downside of 4 per cent from current levels. 'The stock currently trades at 70x/52x/38x P/E on FY26/27/FY28 estimates. We initiate coverage on the stock with a 'Neutral' rating and a target price (TP) of ₹1,900 based on 42x September'27E P/E,' Teena Virmani and Prerit Jain, research analysts at MOFSL said, in a note dated July 10. Motilal Oswal analysts said that they like Bharat Dynamics' business model and strong growth potential but would prefer lower entry points given current valuations. They also flagged risks including any potential cut or reprioritisation in India's defence budget, contract cancellations or failures, changing procurement rules, and supply chain disruptions. Meanwhile, here are the 8 key reasons behind MOFSL's coverage initiation: Rising global spend boosts Indian defence According to MOFSL, NATO's recent commitment to raise defence spending to 5 per cent of GDP by CY35 has strengthened the outlook for global defence players, with indirect positive implications for India. This, analysts believe, could lead to India boosting its own defence budget and create new export opportunities for domestic players. Additionally, India's own emergency procurement drive and the Defence Acquisition Council's (DAC) recent approvals worth ₹1 trillion are expected to considerably expand the addressable market for companies like BDL. Positive industry tailwinds The company's estimated addressable market size is around ₹50,000 crore, driven by missile procurements across platforms including submarines (Project 75I), fighter jets (LCA Tejas Mk1A, Su-30MKI), and helicopters (LCH Prachand, ALH Dhruv). Continued demand for systems like QRSAM, MRSAM, NAG, and VSHORAD, alongside existing long-term contracts for high-value imports like S-400 and Barak-8, analysts highlighted, are expected to fuel growth. Export demand, especially for Akash missile systems, will also support order inflow. Emerging as a leading integrator of missile platforms MOFSL said Bharat Dynamics has transformed from a missile manufacturer into an end-to-end weapon systems integrator for the Army, Navy, and Air Force. It is expanding into drone-delivered payloads, guided bombs, warhead and engine manufacturing, and other segments such as mines and propellants. The company is actively exploring new partnerships with foreign original equipment manufacturers (OEMs) and continues to work closely with DRDO on a range of high-impact defence programs. Strong order book, easing supply chain issues to scale up revenue As of FY25-end, the missile maker's order book stood at ₹22,700 crore, registering a healthy compound annual growth rate (CAGR) of 27 per cent over FY20–24, driven by large deals related to Akash, Konkur, and exports. While supply chain bottlenecks due to the Russia-Ukraine conflict and regional geopolitical tensions in Israel had earlier impacted revenue conversion, MOFSL noted that these issues have begun to ease. With execution expected to normalise, the company is now projected to deliver a 35 per cent revenue CAGR over FY25–28. Focus on indigenisation Bharat Dynamics has been consistently localising its platforms, with import dependence falling majorly over the years. The company now achieves 80–90 per cent indigenisation on several missile systems, which boosts its ability to compete independently in domestic tenders. As a key development partner to DRDO for about 40 projects, BDL is well-positioned to capitalise on indigenous defence production as more projects move into the manufacturing phase. Continuous capacity growth, research efforts to minimise reliance on imports The company has expanded its in-house production capabilities with new facilities like the integrated Radio Frequency Seeker Unit at Kanchanbagh, aimed at producing and testing critical missile components. It is also increasing its capacity to manufacture next-gen SAMs, VSHORAD rockets, ATGM propellants, and more. R&D spending has risen sharply over the past two years, with ongoing efforts in both new product development and upgrading legacy systems to meet emerging operational requirements. Boosting exports BDL's export momentum has picked up sharply following government approvals for Akash system exports to nine countries. Export revenues rose to ₹1,200 crore in FY25 from ₹160 crore in FY24. The company's growing global portfolio includes Akash (SAM), Astra (Air-to-Air), Helina (Air-to-Surface), anti-airfield weapons, various torpedoes, and anti-tank missiles such as Konkurs-M and Milan-2T. Lightweight torpedoes have already been exported, and other products are seeing increasing interest globally. Strong financial outlook MOFSL projects a 35 per cent revenue CAGR and 51 per cent PAT CAGR for BDL over FY25–28, driven by improved execution and easing supply chain margins are expected to strengthen from 23.8 per cent in FY26 to 25.5 per cent by FY28, aided by indigenisation and lower provisioning. With a steady capex of ₹200–300 crore annually and efficient working capital management, the company's return on equity (RoE) and return on capital employed (RoCE) are projected to rise to 25.2 per cent and 25.6 per cent, respectively, by FY28.
Hindustan Times
09-07-2025
- Business
- Hindustan Times
MDL to get submarine contracts worth over ₹1 lakh crore in FY25-26
Public sector yard Mazagon Dock Shipbuilders Limited (MDL) is likely to get two separate contracts from the central government to build submarines for the Indian Navy worth more than ₹1.06 lakh crore before financial year 2025-26 ends, officials aware of the matter said on Wednesday. The Mazagon Dock Shipbuilders Limited. The first contract is the ₹70,000-crore Project 75I under which the Mumbai-based MDL and German yard thyssenkrupp Marine Systems (tkMS) will build six advanced submarines to sharpen the navy's underwater capabilities. The second contract estimated to be worth ₹36,000 crore is for constructing three more Scorpene-class submarines to bolster the country's maritime posture in the Indian Ocean region. The contract negotiation committee is set to begin discussions to finalise the commercial and technical terms for P-75I, and negotiations for the additional Scorpene-class submarines have been completed, said Commodore SB Jamgaonkar (retd), director (submarine and heavy engineering), MDL. 'We are looking forward to executing the two projects. The two deals are likely to be signed before March 31, 2026,' he said. The first submarine under P-75I will be delivered to the navy seven years after the contract is signed, with the rest at the rate of one per year, Jamgaonkar said. These advanced submarines, a variant of HDW Class 214 vessels, will come with air independent propulsion (AIP) systems. AIP significantly increases a submarine's underwater endurance and reduces the risk of detection. As part of the contract, tkMS will transfer the submarine's design and technology to India, enabling the goal of self-reliance in the defence manufacturing sector. The first submarine under P-75I must have a minimum of 45% indigenisation, with the local content going up to 60% in the sixth. MDL and tkMS edged out their only competitor the Larsen & Toubro-Navantia combine for this order. MDL has the capability to simultaneously build 11 submarines and 10 destroyers, said Commander V Puranik (retd), director (corporate planning and personnel), MDL. The first of the three new Scorpene-class submarines will be delivered six years after the contract is signed, Jamgaonkar said. The other two will be at the rate of one per year. 'MDL is ready and configured for this project. We will hit the ground running as skilled labour is there and the supply chain is in place,' he said. MDL has already built six Kalvari-class (Scorpene) diesel-electric attack submarines with technology transfer from the French firm, Naval Group, under a ₹23,562-crore programme called P-75. The navy commissioned the last of these six submarines, INS Vaghsheer in January 2025. In December 2024, the defence ministry signed two separate contracts worth ₹2,867 crore to strengthen the navy's underwater capabilities --- for retrofitting its Kalvari-class submarines with AIP systems to enhance their endurance, and integration of electronic heavy-weight torpedoes to boost their firepower capabilities. The ministry then signed a ₹1,990-crore contract with MDL for the construction of AIP plug for the Defence Research and Development Organisation (DRDO)-AIP system and its integration on the conventional submarines, and another contract worth ₹877 crore with Frances's Naval Group for integration of the torpedoes to augment firepower capabilities of the Kalvari-Class submarines. These submarines are capable of various missions such as anti-surface warfare, anti-submarine warfare, long-range strikes, special operations, and intelligence. The AIP system will be retrofitted when it's ready and the submarines come for refit.
